Netflix: Growth at a High Price

Netflix (NASDAQ:NFLX) may be one of those stocks you'd like to acquire on the recent rebound. In the last month the stock had 10 new lows and was 17.32% off its recent high. This is a stock with double digit projections for increases in sales and earnings and that alone should put it on your watch lists.

The recent hourly price action has been swift:

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Netflix, Inc. provides online movie rental subscription services in the United States. The company offers its subscribers access to a library of movie, television, and other filmed entertainment titles on DVD. Its members can get DVDs delivered to their homes and can instantly watch movies and TV episodes streamed to their TVs and PCs. As of December 31, 2009, Netflix served approximately 12 million subscribers. It also partners with consumer electronics companies to offer a range of devices that can instantly stream movies and TV episodes to members' TVs from Netflix. The company was founded in 1997 and is headquartered in Los Gatos, California. (Yahoo Finance profile)

The 9,081 readers expressing an opinion voted 78% that the stock will beat the market

The more experienced All Stars vote a more aggressive 91% for the same result

Summary: Although the projections for Netflix sales and earning increases are double digit the high P/E ratio means that you are buying growth at a pretty healthy premium. If in the next few day the stock takes a dip you might want to acquire a few shares but I wouldn't take this a major purchase, a price under 237.50 might be OK.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.